Which of the following statements is correct?
A) When firms make an investment decision, they should treat stand-alone projects the same as exclusive projects.
B) When firms make an investment decision, they should not treat stand-alone projects the same as exclusive projects.
C) There are no differences between stand-alone projects and exclusive projects when an investment decision is made.
D) Both A and B

Question

Quizplus · Accepted Answer

Stand-alone projects are evaluated based on their own merit and do not depend on any other project. On the other hand, exclusive projects are evaluated in relation to other projects, and their acceptance or rejection depends on which other projects are also accepted or rejected. Therefore, these two types of projects should not be treated the same when making investment decisions.

Which of the Following Statements Is Correct